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Gold rises on weaker dollar and Fed credibility worries
TD Securities said traders are adding to gold exposure as the USD weakens and concerns grow about Treasury bond market intervention, while pointing to a longer-term $5,350 per ounce target.
Gold has rallied sharply, with TD Securities highlighting that recent US dollar weakness, worries about Fed credibility, and concerns over Treasury bond-market intervention are driving fresh long positioning in the precious metal, according to FXStreet.
The outlook for gold is also being supported by renewed focus on a USD debasement narrative tied to concerns about the US fiscal situation, though TD Securities cautioned that moving toward its $5,350 per ounce target may be premature.
FXStreet notes that the metal was near its highest level in three months, around $4,650, in European trade, with further momentum tied to expectations for details on potential Iran sanctions.
FXStreet further said the US Treasury moved to expand liquidity support buyback operations, increasing the maximum per operation from $2 billion to at least $4 billion in the 10-year to 20-year and 20-year to 30-year sectors starting September 9 and running through November 4.
Latest closeGold $4,432.00 ▲1.6%